Real Estate Analysis and Commentary in WINTER HAVEN

Here are the comments that I sent to Appraisal Qualification Board recently.

I like to provide some comments regarding changes in RE
appraiser qualifications for entry into the profession that are being
considered by the AQB.I’ve been in the
business almost 37 years.We have
continually heard of the pending doom with the coming of a shortage of
appraisers.It has never happened.And indeed it has been just the
opposite.The ease by which someone can
enter the business has provided many unqualified and unskilled individuals.This in part has helped to drive down fees
and make most of the residential appraisal business a cottage industry.Here in Florida, the market is just beginning
to recover from the oversupply of these “wanabee” appraisers which developed in
the middle 2000’s.

The AQB needs to keep the requirement for entry bar at a high
level so that only those who are truly qualified can gain entry to the business.The economics of the business can only improve
when the supply of appraisers is at a level that supports a profitable
operation when trainees are included in the mix.That is, when it is the profitable for the
trainee and the supervising appraiser do business.As it is today, the appraisal fees for many and
requirements of the clients do not support a trainee/supervisor operation.Now, I know that AMC’s enjoy being able to
take a portion of the appraisal fee paid by the borrower for their
operation.That has to change if the
appraisal business ever going to be viable in the future.And it is only going to change when the
number of appraisers is reduced to a level that forces full payment for the
cost of doing business in a professional manner and includes the profitable use
of trainees.